Operator vs. REPE Comp

Had a discussion with friend at a top 20 REPE shop.  He's more senior than me (he's a VP) and he's under the impression that the people working with well known operators make more than traditional REPE.  His thought process was that once you get carry you have more favorable vesting schedules and its generally co-investing on a deal by deal basis.  Also, since the investors are not all institutions they have the ability to charge higher fees.

Is he correct?

3 Comments
 

Somewhat. I would say these type of paces pay Junior employees less than large REPE, but the path to Equity or Co-Invest is faster and can be more lucrative depending on what shop.

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